Custom print

RM-2.1.4

Past version: Effective from 01 Jul 2007 to 30 Sep 2007
To view other versions open the versions tab on the right

Credit risk is the risk that a counterparty will not meet its obligations in accordance with agreed terms, causing a financial loss. In the case of an insurance firm, credit risk will normally occur with:

(a) Reinsurance counterparties;
(b) Assets (e.g. stock, loans);
(c) Derivatives; and
(d) Insurance debtors (premiums due from insured persons and intermediaries).
Amended: January 2007